Leslie's, Inc. (LESL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Warby Parker, Inc.

Rover Group, Inc.

Savers Value Village, Inc.

Rush Enterprises, Inc.

PriceSmart, Inc.

National Vision Holdings, Inc.

Sonic Automotive, Inc.

ChargePoint Holdings, Inc.

Advance Auto Parts, Inc.

The ODP Corp.

Leslie's, Inc.

Why is Leslie's, Inc. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.93 times

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD 32.77 MM
RAW MATERIAL COST(Y) Grown by 33.66% (YoY)
DEBT-EQUITY RATIO (HY) Highest at -207.87 %

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -93.64%, its profits have fallen by -245.6%

Below par performance in long term as well as near term

Along with generating -93.64% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Leslie's, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Leslie's, Inc.

-93.21%

-0.04

2093.05%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.39%

EBIT Growth (5y)

-51.62%

EBIT to Interest (avg)

4.10

Debt to EBITDA (avg)

5.93

Net Debt to Equity (avg)

-3.34

Sales to Capital Employed (avg)

2.28

Tax Ratio

46.64%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

32.46%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

-0.02

EV to EBIT

235.06

EV to EBITDA

23.37

EV to Capital Employed

2.40

EV to Sales

0.71

PEG Ratio

Dividend Yield

ROCE (Latest)

1.02%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

NET PROFIT(HY)

Higher at USD -46.79 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.3 times

-19What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 32.77 MM

RAW MATERIAL COST(Y)

Grown by 33.66% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -207.87 %

NET SALES(Q)

Lowest at USD 147.13 MM

OPERATING PROFIT(Q)

Lowest at USD -47.78 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -32.47 %

PRE-TAX PROFIT(Q)

Lowest at USD -69.15 MM

NET PROFIT(Q)

Lowest at USD -69.84 MM

Here's what is working for Leslie's, Inc.

Inventory Turnover Ratio

Highest at 3.3 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Leslie's, Inc.

Net Profit

At USD -69.84 MM has Fallen at -57.53%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 32.77 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Sales

Lowest at USD 147.13 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Net Sales

Fallen at -16.04%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD -47.78 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at -32.47 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -69.15 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Pre-Tax Profit

Fallen at -25.2%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -69.84 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at -207.87 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 33.66% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales